EARNINGS: Investors were digesting a full plate of corporate earnings and plenty more are on the way. Among the latest, Amazon reported quarterly profit soared past $1 billion for the first time but Google parent Alphabet said it swung into a $3 billion loss because of a U.S. tax overhaul. Automaker Honda is due to report third quarter earnings Friday while Nissan and Toyota are expected next week, as are China trade figures, which will give the latest update on the world's No. 2 economy.

YIELDS: The yield on U.S. 10-year Treasury notes, which are the benchmark for interest rates, has risen swiftly, stoking investor concerns that higher rates could weigh on company earnings and equity prices. This week yields hovered at their highest level since April 2014, fueled by the prospect of stronger economic growth in the U.S. and abroad.

MARKET VIEW: "U.S. and global shares had become overbought and overdue a decent correction, which in turn will impact Australian shares" said Shane Oliver, head of investment strategy at AMP Capital. The rise in bond yields is "likely providing the trigger and it could have further to go with more volatility likely expected this year as inflation risks shift to the upside and the Fed gets more aggressive."

US ECONOMY: Manufacturing expanded again in January but at a slower pace than the previous month, according to a monthly index, while a Commerce Department report found construction spending rose at its weakest pace since the end of the global financial crisis. Monthly job data is due later Friday, providing another indicator for the U.S. economy, the world's biggest.

ENERGY: Oil futures extended gains as benchmark U.S. crude climbed 25 cents to $66.04 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.07, or 1.7 percent, to settle at $65.80 per barrel on Thursday. Brent crude, used to price international oils, added 25 cents to $69.90 per barrel in London.

CURRENCIES: The dollar rose to $109.67 yen from 109.41 yen in late trading Thursday. The euro weakened to $1.2494 from $1.2514.